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If this is a small environment then it's fine but be sure to measure and take into consideration the requirements needed to adequately serve the users. In other words, make sure the server can handle it.

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From what I remember Microsoft does not recommend installing SQL server on any domain controller. Well that and having DHCP on the same box (well, when it's setup a certain way). But people will do what they want.

GoogleFu is strong with this one ^

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From what I remember Microsoft does not recommend installing SQL server on any domain controller. Well that and having DHCP on the same box (well, when it's setup a certain way). But people will do what they want.

Right, they don't recommend it but they support it. The reason for not installing SQL on a domain controller is what's called Isolation of Services. The thinking behind it is that if one service is compromised it won't then compromise the other service(s). The recommendation comes from a security standpoint and has nothing to do with compatibility. But you should take into consideration the secure too. http://msdn.microsoft.com/en-us/libr...8(SQL.90).aspx

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The reason for not installing SQL on a domain controller is what's called Isolation of Services. The thinking behind it is that if one service is compromised it won't then compromise the other service(s).

Another reason would be performance. SQL servers use extensively loads of memory and depending on the DC role it could be a performance issue.
Although, have to agree that security concerns are the most important of the two.

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But with SQL server you can limit the memory if you need to.
I've done it a couple of years ago. I had the choice, one DC or two DC's and with one of them SQL server.
My choice back then was better safe then sorry so rather 2 DC's then 1